World Fuel Services 2012 Annual Report Download - page 24

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• material disruptions in the availability or supply of fuel;
• risks associated with the storage, transportation and delivery of petroleum products;
• risks associated with operating in high risk locations, such as Iraq and Afghanistan;
• uninsured losses;
• the impact of natural disasters, such as hurricanes;
• our failure to comply with restrictions and covenants in our senior revolving credit facility (‘‘Credit
Facility’’) and our senior term loans (‘‘Term Loans’’);
• the liquidity and solvency of banks within our Credit Facility and Term Loans;
• increases in interest rates;
• declines in the value and liquidity of cash equivalents and investments;
• our ability to retain and attract senior management and other key employees;
• changes in U.S. or foreign tax laws or changes in the mix of taxable income among different tax
jurisdictions;
• our ability to comply with U.S. and international laws and regulations including those related to
anti-corruption, economic sanction programs and environmental matters;
• increased levels of competition;
• the outcome of litigation; and
• other risks, including those described in ‘‘Item 1A – Risk Factors’’ and those described from time
to time in our other filings with the SEC.
We operate in a very competitive and rapidly changing environment. New risks emerge from time to
time. It is not possible for us to predict all of those risks, nor can we assess the impact of all of those risks
on our business or the extent to which any factor may cause actual results to differ materially from those
contained in any forward-looking statement. The forward-looking statements in this 2012 10-K Report
are based on assumptions management believes are reasonable. However, due to the uncertainties
associated with forward-looking statements, you should not place undue reliance on any forward-looking
statements. Further, forward-looking statements speak only as of the date they are made, and unless
required by law, we expressly disclaim any obligation or undertaking to publicly update any of them in
light of new information, future events, or otherwise.
For these statements, we claim the protection of the safe harbor for forward-looking statements
contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange
Act.
Item 1A. Risk Factors
We extend credit to most of our customers in connection with their purchases of fuel and
services from us, and our business, financial condition, results of operations and cash flows
will be adversely affected if we are unable to collect accounts receivable.
We extend credit to most of our customers in connection with their purchases of fuel and services from
us. Our success in attracting customers has been due, in part, to our willingness to extend credit on an
unsecured basis to customers that would otherwise be required to prepay or post letters of credit with
other suppliers of fuel and other services. While no single customer represents more than 10% of our
total consolidated revenue, diversification of credit risk is limited because we sell primarily within the
aviation, marine and land transportation industries.
Our exposure to credit losses will depend on the financial condition of our customers and other factors
beyond our control, such as deteriorating conditions in the world economy or in the aviation, marine or
land transportation industries, political instability, terrorist activities, military action or natural disasters in
our market areas. The unprecedented levels of disruption and volatility in the credit and financial markets
over the past several years have increased our possible exposure to customer credit risk because it has
made it harder for our customers to access sufficient capital to meet their liquidity needs. This market
turmoil coupled with a reduction of business activity generally increases our risks related to our status as
an unsecured creditor of most of our customers. Credit losses, if significant, would have a material
adverse effect on our business, financial condition, results of operations and cash flows.
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